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What Effect of COVID-19 on Industry Workers and Small Businesses?


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    Effect of Coronavirus Having on Service Industry Workers and Small Businesses

    Coronavirus (COVID-19) has caused massive disruptions in life throughout Florida. Individuals in the service industry and small business owners have been hit especially hard.

    This is due in part to state and country orders to close nonessential businesses and for citizens to stay at home in order to reduce the spread of coronavirus.

    There may be state and federal relief available to Florida service industry workers who have lost their jobs and Florida small businesses who have lost revenue because of coronavirus.  

    The Effect of Coronavirus on Service Industry Workers in FloridaEffects of Coronavirus on Service Industry Workers in FL

    Employees in the service industry have faced harsh conditions since the start of the coronavirus pandemic. Coronavirus has resulted in the loss of many jobs in this field, as many Florida restaurants and bars have been forced to limit services to takeout and delivery only or have temporarily closed. 

    According to the Florida Department of Economic Opportunity (DEO), more than 1.8 million unemployment claims were submitted in the state of Florida between March 15 and May 5. Of 463,390 initial claimants in this group, 115,313—nearly 25%—of these workers came from the accommodation and food services industry. 

    Florida workers can apply for unemployment benefits online through the Florida DEO. 

    The Effect of Coronavirus on Small Businesses in Florida, USA

    Many small businesses in Florida have been forced to shut down temporarily as part of the effort to slow the spread of the pandemic. Other businesses remain open if they offer essential services as defined by state or county regulations. However, even small businesses offering essential services have faced decreasing profits as consumers avoid shopping. Stay-at-home orders have kept many people inside, making it difficult for many businesses to continue operations.

    The Steps Being Taken to Help Florida Small Business Owners

    Many small business owners are turning to the government for financial assistance to handle the effects of coronavirus. Both the federal and state governments have taken steps to provide relief to small business owners.

    Federal Relief for Small Business OwnersEffect of Coronavirus on Small Businesses in Florida, USA

    The federal government set up the Coronavirus Aid, Relief, and Economic Security (CARES) Act in late March 2020. This act provides small business owners with forgivable loans. These loans are designed to allow businesses to pay employees. Currently, you may apply for aid through the CARES Act if you are:

    • Self-employed
    • An independent contractor
    • A sole proprietor
    • A small business owner

    Note that these loans may be forgiven as long as recipients spend at least 75% of the funds on payroll. The rest of the loan may only be used on approved items if you would like the loan to be forgiven. 

    You can learn more about the CARES Act by consulting a lawyer in Florida.

    State Relief for Small Business Owners

    The state of Florida has taken some steps to help small business owners, as well. The state briefly offered Florida Small Business Emergency Bridge Loans, but these loans are no longer being offered. 

    Florida’s Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) Program is offering low-interest loans and loan advances to Florida small businesses affected by a coronavirus.

    The Law Offices of Wolf & Pravato May Be Able to Help You

    If you are seeking legal help with issues related to coronavirus in South Florida, call the Law Offices of Wolf & Pravato. We offer a variety of legal services and may be able to help you apply for governmental aid or appeal a denial. 

    Find out more by calling (954) 633-8270 to speak with a representative of the Law Offices of Wolf & Pravato. Our team will provide prompt and responsive communication to you throughout our work together.

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